HSBC Holdings said in London that losses in the United States housing market were spreading to credit card and other consumer loans, forcing the bank to set aside $3.4 billion to cover bad loans, more than it had forecast about four months ago.

HSBC, which had started to close mortgage units and changed managers to limit the effects on its business, said it could take up to three years to resolve the bank’s problems related to the subprime crisis, especially as the difficulties are widening.

“Early-stage delinquency rates in both cards and branch unsecured lending are also showing signs of deterioration,” HSBC said in a statement.

That seems to be much longer than many others are saying. Could this be part of the reason:

Aside from the subprime resets in 2008, look at the Option ARM and Alt-A resets in 2010/2011.